Co-Operation With American Airlines Reaffirmed

29 July 1999

London, Thursday, July 29, 1999: British Airways and American Airlines said today they remain committed to developing their ties and co-operation in ways which do not require anti-trust immunity, both through the existing oneworld? alliance - which was developed as a world-class alliance without the need for regulatory immunity on specific routes - and by continuing to broaden their alliance.

If the airlines` June 1996 proposal for joint venture transatlantic operations is not permitted by regulators on terms which are commercially viable, that will clearly be a matter of regret.

It will not stop continuing co-operation between the two airlines wherever that is permitted by regulators, nor will it lessen either company`s commitment to oneworld.

Bob Ayling, British Airways` Chief Executive, said: “We will not accede to demands that do not make sense for either company. It would be better to develop activities that don`t require anti-trust immunity rather than to accept conditions which would be a dereliction of our duty to shareholders` interests.”

Don Carty, American Airlines` President and CEO, said: “Since announcing our alliance in June 1996, our two airlines have worked closely together and have only grown more committed to the partnership and the opportunities it presents. While our alliance may now evolve somewhat differently than originally proposed, it will still be a beneficial one for our customers, shareholders and employees.

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“There are alternatives under the existing bilateral aviation agreement between the US and the UK, as well as other options, which will allow our airlines to remain competitive and provide outstanding service to our customers.”